If you are 70½ or older, you may be interested in a way to lower the income and taxes from your IRA withdrawals. Learn more...

IRA Charitable Rollover

  • If you are 70½ or older, you may be interested in a way to lower the income and taxes from your IRA withdrawals. An IRA charitable rollover is the perfect way to help your favorite causes and charities benefit this year. To avoid any tax liability, IRA distributions must go directly to the donor’s charity of choice, such as a fund at the Community Foundation.

Benefits of an IRA charitable rollover

  • Avoid taxes on transfers of up to $100,000 from your IRA to the Community Foundation
  • Satisfy your required minimum distribution (RMD) for the year
  • Reduce your taxable income, even if you do not itemize deductions
  • Give back to your favorite charities through a designated fund to support up to 4 charities of your choice. (The IRS does not permit charitable IRA rollovers to donor-advised funds)

How an IRA charitable rollover gift works

  1. Contact your IRA plan administrator to donate from your IRA to the Community Foundation.
  2. Your IRA funds can be used to open a designated fund to help your favorite causes and charities. A designated fund can provide giving immediately or over time.
  3. Please note that IRA charitable rollover gifts do not qualify for a charitable deduction.

Charitable Giving Funds, or Donor Advised Funds, are another option to minimize your taxes in 2018. Donor Advised Funds operate much like private foundations without the administrative burdens or paperwork.

Bundling charitable gifts with the use of a Donor Advised Fund allows donors to give to their charities of choice when they want while receiving a charitable tax deduction in 2018. Bundling requires donors to pack multiple years of donations into one year and file an itemized deduction for that tax year. The other years, the taxpayer would return to taking the standard deduction.

Benefits of a Donor Advised Fund

  • Local staff with the in-depth knowledge to help your charitable giving strategy and goals.
  • Contribute when needed, and receive an immediate income tax deduction.
  • Enjoy a quick and easy set-up with no minimums.
  • Make grant recommendations at your convenience to any qualified charity in the United States.
  • The Community Foundation handles the paperwork for you by issuing payment to your chosen charities.
  • Or - take advantage of online fund account access and grant distribution through your secure personal online grant portal.
  • Select recognition or anonymity on a grant-by-grant basis, or for all of your activities.
  • Select from many investment portfolio options, including personalized options with your own investment manager.
  • Involve your children and other relatives to preserve a family tradition of giving back to the community.